EU Requests WTO Consultation on Colombia’s Compliance in Frozen Fries Dispute
Due to the Republic of Colombia’s noncompliance with the decisions made by the WTO Panel and Appeal Arbitrators on anti-dumping charges on frozen fry imports from Belgium, the Netherlands, and Germany, the EU has opened compliance procedures against the country.
By its Ministerial Resolution dated November 21, 2023, Colombia said that it had put into effect the conclusions and suggestions of the panel report as well as the Appeal Arbitration Award of the Multi-Party Interim Appeal Arbitration Arrangement (MPIA). However, according to the EU, Colombia used WTO-incompatible methods to inflate and/or artificially construct the dumping margins.
“This is why the EU is making recourse to the WTO’s compliance consultation process. With this step, the EU seeks to preserve the rights of EU exporters and to send a signal to Colombia – as well as other countries intending to limit EU exports – that anti-dumping investigations need to be carried out in full respect of WTO rules,” according to a recent release from The European Commission’s Trade Department.
Parties shall arrange discussions as soon as possible after the consultation request, but no later than fifteen days. The EU may, at any point after the 15 days have passed, request the creation of a compliance panel by WTO Dispute Settlement Understanding Article 21.5.
Exports of frozen fries from the three Member States to Colombia amounted to EUR23m in 2016. The duties were imposed in November 2018, and target almost all (85% or EUR19.3m) of EU exports of frozen fries to Colombia. Export volumes from the EU overall remained stable after the imposition of measures until 2020. While in 2021 and 2022 total exports from the EU grew substantially, imports from the companies subject to duties were substituted by other EU exporters not subject to anti-dumping duties. Notably, Germany has no longer been exporting to Colombia since 2022.
This dispute (DS591) was submitted by the EU against Colombia in November 2019. The panel issued its final report to the parties on 22 August 2022, while the Arbitrators’ Award under the MPIA was issued on 21 December 2022.
